Uganda Clays Limited has reported a net loss of shs4.95 billion for the year ended December 2024, deepening from the shs2.85 billion loss recorded in 2023.
The financial performance was presented to shareholders during the company’s hybrid Annual General Meeting held on Friday at the Sheraton Kampala Hotel.
Board Chairperson Eng. Martin Kasekende attributed the widening losses to a surge in operational and financing costs that outpaced the modest growth in revenue.
“The company recorded a significant rise in interest expenses, increasing from shs1.8 billion in 2023 to shs3.2 billion in 2024,” Kasekende explained. “This was mainly due to the full-year accrual of notional interest on the NSSF loan, compared to just eight months in the previous period.”
Despite the loss, Uganda Clays posted a revenue increase to shs31.6 billion in 2024, up from shs30.4 billion in 2023. However, gross profit dipped slightly to shs8.2 billion from shs 8.6 billion the previous year. Total assets also edged down marginally to shs 76 billion from shs77 billion, largely due to depreciation.
In light of the financial performance, shareholders were informed that no dividends would be paid out this year.
Looking ahead, Eng. Kasekende revealed that the company has developed a 10-year strategy focused on three pillars: turnaround, repair, and aggressive growth.
“We aim to stabilize operations, improve cost controls, and re-establish profitability. Additionally, we are investing in automation, skills development, and exploring regional expansion,” he said.
Managing Director Reuben Tumwebaze announced the delivery of a new Italian manufacturing line at the Kajjansi plant, which is expected to significantly increase daily tile production from 35,000 to 120,000 units.
“We’re also preparing to install a large-capacity brick production line that will lower unit costs from shs 1,500 to around shs00,” Tumwebaze added. “This will allow us to compete more effectively with smaller brickmakers who sell at shs500.”
He projected that the two new projects would push annual sales revenues beyond shs100 billion and drive the company back to profitability.
